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2025 ANNUAL REPORT keytronic.com CORPORATE OFFICE 4424 N SULLIVAN RD. SPOKANE VALLEY, WA 99216 509-928-8000
20 ANNUAL 25 REPORT We are committed to continually investing in and developing our people to create a culture of innovation that will bene t both the company and our customers, and differentiate us from our competitors. Our people are our most valuable asset. DEAR SHAREHOLDERS Fiscal 2025 was a year of uncertainty and transition. Fluctuations in tariff rates resulted in postponed launches for many of our new customer programs and had a considerable effect on our nancial performance. Nevertheless, we introduced new production ef ciencies and automation and rebalanced our manufacturing footprint by investing in a new US facility and new production equipment in Vietnam. To provide our customers with better options to mitigate the burden of tariffs, we made important changes to our manufacturing footprint. In the US, we expanded our clean-tech, cutting-edge manufacturing operations in Arkansas. Our US-based production provides customers with outstanding exibility, engineering support, and ease of communications. In Vietnam, we have ample space to double our capacity and added major production capability which will support manufacturing of a medical device during scal 2026. Our Vietnam-based production offers the high-quality, low-cost choice that was often associated with China in the past. By the end of scal 2026, we expect approximately half of our manufacturing to take place in our US and Vietnam facilities. These initiatives re ect the longstanding trends to nearshore and move more of their production away from China, as well as de-risk the potential adverse impact of tariff increases and geo-political tensions. While our Mexico facility continues to offer a unique solution for tariff mitigation under the existing USMCA agreement, we see sustained cost increases in Mexico. In order to stay cost competitive, we streamlined our Mexican operations and invested in automation. During scal 2025, we reduced our headcount by approximately 600 employees mostly in our Mexico facility. Our improved cost structure in Mexico is anticipated to lead to new programs and growth. During the year, we also continued to win new programs in: manufacturing equipment, vehicle lighting, aerospace systems, energy resiliency, telecommunications, pest control, energy storage, medical technology, temperature-controlled shipping, personal protection equipment, air puri cation, automotive, utilities inspection and data processing equipment. Despite many uncertainties and disruptions in global markets, these wins underscore the continued trend towards tariff mitigation and near-shoring contract manufacturing. We move into scal 2026 with a strong pipeline of new business and signi cant improvements to our operating ef ciencies. We remain optimistic that our cost reductions over the past two years will make us even more competitive. We are also very encouraged by our increasing cash ow generated from operations during scal 2025, our enhanced global manufacturing footprint, and the innovations f rom our design engineering. All these initiatives have increased our potential for pro table growth over the long term. In closing, I want to emphasize that the execution of our strategy was made possible not only by our investments in plants and equipment, but even more so because of the skills, local knowledge and talents of our people. I want to thank our exceptional employees for their dedication and hard work during this past year. Sincerely, Brett Larsen President and Chief Executive Of cer
 • shareholder letter icon 9/18/2025 Letter Continued (Full PDF)
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 • Benford's Law Stocks icon KTCC Benford's Law Stock Score = 59


KTCC Shareholder/Stockholder Letter Transcript:

2025
ANNUAL REPORT
keytronic.com
CORPORATE OFFICE
4424 N SULLIVAN RD.
SPOKANE VALLEY, WA 99216
509-928-8000

20 ANNUAL
25 REPORT
We are committed to continually investing in and developing our
people to create a culture of innovation that will bene   t both the
company and our customers, and differentiate us from our
competitors. Our people are our most valuable asset.
DEAR SHAREHOLDERS
Fiscal 2025 was a year of uncertainty and transition. Fluctuations in tariff rates resulted in postponed
launches for many of our new customer programs and had a considerable effect on our    nancial performance. Nevertheless, we introduced new production ef   ciencies and automation and rebalanced our
manufacturing footprint by investing in a new US facility and new production equipment in Vietnam.
To provide our customers with better options to mitigate the burden of tariffs, we made important
changes to our manufacturing footprint. In the US, we expanded our clean-tech, cutting-edge manufacturing operations in Arkansas. Our US-based production provides customers with outstanding    exibility,
engineering support, and ease of communications. In Vietnam, we have ample space to double our
capacity and added major production capability which will support manufacturing of a medical device
during    scal 2026. Our Vietnam-based production offers the high-quality, low-cost choice that was often
associated with China in the past.
By the end of    scal 2026, we expect approximately half of our manufacturing to take place in our US and
Vietnam facilities. These initiatives re   ect the longstanding trends to nearshore and move more of their
production away from China, as well as de-risk the potential adverse impact of tariff increases and
geo-political tensions.
While our Mexico facility continues to offer a unique solution for tariff mitigation under the existing
USMCA agreement, we see sustained cost increases in Mexico. In order to stay cost competitive, we
streamlined our Mexican operations and invested in automation. During    scal 2025, we reduced our
headcount by approximately 600 employees mostly in our Mexico facility. Our improved cost structure in
Mexico is anticipated to lead to new programs and growth.
During the year, we also continued to win new programs in: manufacturing equipment, vehicle lighting,
aerospace systems, energy resiliency, telecommunications, pest control, energy storage, medical technology, temperature-controlled shipping, personal protection equipment, air puri   cation, automotive,
utilities inspection and data processing equipment. Despite many uncertainties and disruptions in
global markets, these wins underscore the continued trend towards tariff mitigation and near-shoring
contract manufacturing.
We move into    scal 2026 with a strong pipeline of new business and signi   cant improvements to our
operating ef   ciencies. We remain optimistic that our cost reductions over the past two years will make
us even more competitive. We are also very encouraged by our increasing cash    ow generated from
operations during    scal 2025, our enhanced global manufacturing footprint, and the innovations f rom
our design engineering. All these initiatives have increased our potential for pro   table growth over the
long term.
In closing, I want to emphasize that the execution of our strategy was made possible not only by our
investments in plants and equipment, but even more so because of the skills, local knowledge and
talents of our people. I want to thank our exceptional employees for their dedication and hard work
during this past year.
Sincerely,
Brett Larsen
President and Chief Executive Of   cer



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